TaxTMI 
TaxTMI 
2011 (2) TMI 526
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....sessee M/s. Silvo Liacal Chem Ltd. are procuring Hydrogenated Caster Oil in flake form and the same is melted and then spray dried by them to convert into powder form. The said product is packed and sold under the name of 'Lubriplast' and used in the manufacture of PVC pipes and is also used as lubricant in the plastic industry. The Department issued a show-cause notice dated 2-8-2002 seeking classification of the product under Heading 3812.00 of CETA, 1985 and demanding duty thereon amounting to Rs. 14,75,761/- for the clearances made by the party of the said product during the period from July 1997 to March 02. The case was adjudicated by the Addl. Commissioner of Central Excise, Raigad vide Order-in-Original dated 9-4-2003. In the said o....
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.... agent in the manufacture of formed plastics and rubber goods. In the light of these observations the lower appellate authority set aside the order-in-original and allowed the appeal. 4. The Department is in appeal against the said order of the lower appellate authority. The argument adduced by the department is that by converting the hydrogenated castor oil from flakes into powder form, a new product "Lubriplast" arises which has a specific use in the plastic industry. Therefore, the process is deemed to be a manufacturing process and, accordingly, the product has to be classified under Heading 3812.00 of CETA, 1985 as a 'stabilizer'. Accordingly, they argued that the product is leviable to duty and the order passed by the adjudicati....
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....onverted into powder form by melting and spraying. No chemical or any other material has been added in the process. The raw material which has been purchased from the market is classified under Heading 15.04. Since there is only change in the form and there is no change in the chemical composition, nothing new has emerged so as to constitute a new product with a distinct name, character and use. In a number of judicial pronouncements namely Union of India v. Delhi Cloth and General Mills Co. Ltd. - 1977 (1) E.L.T. (J199) (S.C.) and Union of India v. M/s. Parle Products Ltd. - 1994 (74) E.L.T. 492 (S.C.) it has been held that "activity or process in order to amount to 'manufacture' must lead to emergence of a new commercial product different....